The Emerging Africa Infrastructure Fund (EAAIF), an impact debt finance fund managed by Ninety One, has marked its first transaction in Asia by participating in an $86.2m (€81.4m) debt financing for a sustainable aviation fuel (SAF) facility in Pakistan.
EAAIF, a Private Infrastructure Development Group (PIDG) company, has invested $20m in the $141.9m SAF project, developed by Safco Ventures, with a 200,000-tonne feedstock-processing capacity.
The project’s debt financing secured comprises a $41.2m senior secured loan from the Asian Development Bank (ADB), $20m of syndicated senior secured B-loans each from EAAIF and the ILX Fund and a $5m syndicated parallel loan from the International Finance Corporation.
Previously known as the Emerging Africa Infrastructure Fund, the organisation recently rebranded as the Emerging Africa and Asia Infrastructure Fund to reflect its broadened focus on South and South-east Asia.
Tidiane Doucoure, director of emerging markets alternative credit at Ninety One, said: “With this investment, we are affirming our commitment to expand EAAIF in South and South-east Asia through major infrastructure projects that play a transformative role and set new standards.
“Sustainable aviation fuel supply must increase by more than 150 times to meet the aviation industry’s needs and support the sector’s ambition to reach net zero by 2050. As a result of the provision of financing to Safco Ventures on this landmark project, upon completion it will be one of the largest sustainable-aviation-fuel plants in the world.”
Ali Shaikh, CEO at Safco Ventures, said: “The investment marks a pivotal step in Pakistan’s development, introducing a cutting-edge technology to the nation. We are grateful to the Asian Development Bank for its pivotal role as the sole bookrunner and lead adviser, enabling us to establish the first and largest SAF plant in South Asia. We are thrilled to have EAAIF involved in their inaugural transaction in Pakistan, and we look forward to a cleaner, more sustainable future.”
Suzanne Gaboury, director general for private sector operations at the Asian Development Bank, said: “This financing reinforces ADB’s commitment as the Asia and the Pacific’s climate bank and addresses the limited decarbonisation options in the aviation sector.
“ADB has been a driving force behind this transaction, providing and mobilising long-term financing to fuel the development of the region’s first SAF project and reinforce market confidence.”
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